Indian Imports Set to Rebound

Posted | 23/09/2013 / Views | 1319
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India is traditionally the biggest consumer of gold in the world.  But with an exodus of investment (due to tapering concerns) and current account deficit blow outs the government has imposed strict import restrictions.  A 10% charge for a start but also requiring 20% to be re exported.  This saw a drop in August from July of nearly 80% in value.  But reports are circulating now that clarify that much of the drop was due to confusion in interpreting the rules and we should see a strong rebound in volumes again.  They warn however they doubt it will reach the 70t/month yearly average but will inevitably be boosted by gold smuggled in illegally.  The August numbers were a concern for many investors from a demand perspective but appears to be on its way to resolution.  Many Indian buyers are looking at buying and storing their gold in offshore safer havens like Australia.